Taxing data centers
On August 6, Senate Finance Committee Ranking Member Ron Wyden (D-OR) shared a draft proposal on data center taxation. The white paper from the committee’s Democratic staff suggests ending current federal tax incentives available to data centers.
Those incentives include 100% bonus depreciation under IRC § 168(k). Ending that incentive for data centers aligns with a July bill headed up by Senator Mark Warner (D-VA), S. 5054.
The Wyden proposal also targets incentives under the Opportunity Zones program and the Real Estate Investment Trust framework. In addition, it calls for a new excise tax in the form of a gross receipts tax on operators of U.S. data centers.
To dig deeper, visit the original article on the Thomson Reuters blog.